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Audit procedure refers to the way in which the audit work should be conducted. It is the
procedure followed by an auditor for the actual conduct of his audit work. There are certain
aspects of audit procedure which are common in all audit works. They are:
1) Routine checking:- The checking of castings and postings of the common books of the
organization is called routine checking. In other words it is the checking of subsidiary
books and ledger accounts by an auditor.
Routine checking involve the following operations:
a) Checking of the castings, sub castings, carry forward and other calculations in the books
of original entry
b) Checking of the postings into the ledgers
c) Checking of the casting and balances in the ledgers
d) Checking of the transfer of the balances from the ledgers to the trial balance.
Generally, routine checking is conducted for the following books:
Cash book
Petty cash book
Purchase book
Sales book
Purchase return book
Sales return book
Bills receivable book
Bills payable book
Journal proper
Sales ledger
Purchase ledger
Private ledger
Wages and salaries book
Stock sheet
Advantages of routine checking
1) It facilitates thorough checking of the books original entry
2) Under routine checking, postings are completely checked
3) It helps in verifying arithmetical accuracy of the entries in the books of accounts
4) Clerical errors and simple frauds are located by routine checking
5) Checking of posting and casting is helpful in preparation of trial balance
6) It is easy and simple job which can be done by any audit clerk
Disadvantages of routine checking:
1) It can reveal only arithmetical errors and ordinary frauds
2) It is a mechanical checking, so it causes monotony
3) It is not important in the audit of a concern where self balancing system is in operation

2). Test checking or sample checking or selective verification:- Test checking means
checking by an auditor, a few transactions selected at random here and there so as to form his
final judgement on the whole set of transactions. It means to select and examine
representative sample from a large number of similar items. Test checking involves sampling.
One objective of test checking is to arrive at characteristics present in the mass transactions
from the checking of representative sample.
Conditions or essentials or precautions of test checking:-
1) The success of test checking largely depends upon the system of internal check in
operations the business.
2) The sample selected for test checking should be at random.
3) It should be applied only to homogeneous transactions.
4) The sample of test checking should be selected without bias.
5) One selection of sample should be made in such a way that it covers the work of each of
the staff of the client.
Test checking should not be applied to cash book items. No indication should be given to
client as regards the method of test checking. One sample for test checking should be selected
by the auditor himself.
There are certain transactions which are not suitable for test checking. They are; 1) Opening
and closing entries. 2) Cash book entries. 3) Transactions of seasonal industry. 4) Non
recurring transactions. 5) Bank reconciliation statement. 6) Items which are significant. 7)
Transactions which are required by law is to be checked carefully.
1) It helps the auditor to complete the audit work in a short time.
2) It helps in reducing the cost of audit.
3) It enables the auditor to undertake the audit of many concerns simultaneously.
4) It keeps the client staff alert and conscious.
5) If selection is done intelligently, test checking ensures the accuracy of books of account.
6) It ensures the periodic examination of the system of internal check.
1) Test checking may fail to detect errors and frauds, if selection is not done intelligently.
2) Test checking increases the responsibility of the auditor.
3) Where there is test checking, the staff of the client may become careless.
4) Through test checking, an auditor may not get a true position of the financial state of
affairs of an undertaking.
Surprise checks Surprise checks constitute a system under which an auditor makes a surprise
checking of some of the important items.
Surprise check, wholly cover:
a) Verification of cash.
b) Verification of investment.
c) Verification of records relating to stocks and stores.
d) Verification of books of original entry.
4)Audit in Depth:- Audit in depth means the examination of the selected items in depth or in
detail from the origin of the transactions to fair conclusions. In other words, it means step by
step verification of selected items or transactions from the beginning to the end.
Adoption of distinctive ticks, tick marks or check marks:-
In the cause of audit work, an auditor uses variety of marks or symbols to indicate the work
that has been done. These marks or symbols are known as ticks or check marks or check
signs. Ticks are much significant to an auditor.
They are useful to the auditor in the following respects:
a) Ticks help the auditor to know the checking that has been done by the earlier.
b) By means of ticks made earlier, an auditor can easily find out the alterations in the books
account made subsequent to the audit.
c) Ticks facilitates tracing of processes and documents connected with the transactions and
thereby increase the efficiency of audit.

Points to be noted or precautions to be taken while using ticks:-

1) Different types of ticks should be used for different audit works.
2) Ticks should be small.
3) It should be clear.
4) It is advisable to use only pens or ball pens.
5) It is advisable to use ticks of different colours for different purposes.
6) Tick should not get mixed up with the figures shown in the books of account.
7) Ticks used by the client staff are not used by the audit staff.
8) Special ticks must be used for items which require special attention.